China and the US have agreed to reciprocal tariff reductions covering about USD 60 billion of goods, with relief for most agricultural products but US soybeans remaining subject to a 10% retaliatory tariff.
China’s commerce ministry and the White House jointly announced a reciprocal tariff reduction plan worth USD 60 billion on 28 September 2026.
Each country identified roughly USD 30 billion of goods for more favourable tariff treatment, with the US Trade Representative stating this would unlock improved market access for about 30% of US exports to China.
This follows the US and China agreeing on 23 September 2026 to extend their trade truce by two months, moving the expiration date to 10 January 2027.
Agricultural goods get relief, except soybeans
China plans to reduce tariffs on US corn, wheat, sorghum, meat, dairy, vegetable oils, and soybean meals. More than 90% of the covered agricultural products will be exempt from additional tariffs and instead face most-favoured-nation rates.
A major exception stands out. Non-seed soybeans, America’s largest agricultural export to China valued at USD 16.2 billion in 2025, remained excluded from the tariff reduction list. US soybeans still face a 10% retaliatory tariff.
The American Soybean Association expressed disappointment, noting that the tariff prevents Chinese private buyers from competing fairly for purchases.
Agricultural goods on the approved list totalled approximately USD 17 billion in 2024 trade volume. Chinese state-run companies Sinograin and COFCO have already purchased over 12 million metric tons of US soybeans this year, representing roughly half of the 25 million metric tons Beijing committed to buying annually through 2028. The White House said China has agreed to purchase this annual volume, though China has not officially confirmed a purchase target.
Traders expressed concern about the soybean tariff. Without duties, both US and Brazilian soybeans land in China at roughly USD 595 per ton. Private crushers operating at negative margins find the 10% tariff too steep to absorb. Chicago Board of Trade soybean futures fell 1.38% following the announcement.
Additional trade measures
The two nations extended their trade truce by two months through 10 January, providing what China’s commerce ministry called a “relatively stable and predictable policy environment” for ongoing cooperation and talks.
Both countries committed to establishing an agriculture working group to discuss two-way market access and regulation, with the first meeting scheduled before year’s end.
A separate agreement requires China to import 10 million metric tons of US coal annually in 2027 and 2028, representing roughly 2% of China’s annual coal imports.
The US list for tariff reductions includes Chinese consumer goods like small appliances, toys worth USD 14.4 billion in 2024 trade (though that fell to USD 9.8 billion in 2025), tableware, blankets, bed linens, fireworks, artificial flowers, and children’s car seats.
